Magic
Garage Cleaners - PESTEL Analysis
Magic Garage Cleaners specializes in the cleanliness
of home appliances, removal of junk and power washing. The firm’s many years of
operation has ensured its expansion. Today, Magic Garage Cleaners has a branch
in Oklahoma .
It has introduced its services to the state of Oklahoma due to a growing need for home
improvements, garage flooring and attic cleanings. The presence of business opportunities
in Oklahoma
does not imply that the firm is not subject to government regulation, economic,
and technological advances. In fact, the management of Magic Garage Cleaners
(MGC) has set up concrete strategies to boost its competition. As Oklahoma ’s population
grows, so does the requirement for MGC services. It prompts the need for PESTEL
analysis for better service delivery.
Political
Politics plays a vital role in business performance:
MGC is not an exception. America
has volatile political environment characterized by a constant battle for
dominance between Democrats, Republicans, conservatives and liberals. As such,
policies that curb the MGC operations in Oklahoma
are periodically revised. For instance, Oklahoma Tax Commission has introduced
multiple tax policies aimed at extorting resources from firms operating within
its area of operation. Between 2001 and 2010, taxes imposed on business
entities, especially startups, have risen by not less than 30%. Oklahoma Tax Commission argues that the steep
rise is due to the rising government spending on infrastructure and state
development (OTC, 2011). In addition, Oklahoma State
government has loosened its trade restrictions to encourage investors. The
attractive tariffs lured MGC to join the state business even though it dawned
later that the heavy business taxation outweighs sluggish trade restrictions.
Notably the local government is relatively stable for business operations.
Economics
In the past, Oklahoma
economy was driven by oil and gas. However, the industry has slumped since 2008
economic crisis. Still, other sectors grew to absorb the jobless population.
Currently, the state is one of America ’s
technology and food processing hub, hence implying that it has good business prospects.
In fact, up to 7 Fortune 500
companies have their headquarters in Oklahoma .
Despite the economic crisis, the GDP
grew by 10% to 147.5 billion between 2006 and the year 2010 (Goble, 2015). The
implication of this development is that MGC has a better chance to boost its
performance and to balance losses endured in the economically poor American
states.
In the first four months of 2015, the employment
rate in Oklahoma
rose by 1.4% indicating that that more residents joined the middle-income
class. Most MCG services and products target the employed population with
disposable income to spend. Therefore, the rising employment rate is welcomed.
National economic problems, however, impact the local business environment. A
weakening dollar, high inflation and low interest rates are some of national
crises taking toll on overall MGC business performance.
Social Factors
Magic Garage Cleaners targets working population for
provision of their services. The friendliness of Oklahoma ’s business environment has
attracted large business firms. Consequently, there is a mass movement of
professionals from others states to work on the top business entities, hence an
increase in population. 2014 population estimates indicate that more than 3.8
million people reside in the state, which is a 4.2% increase from the previous
year. As the population grow, so does MGC. Majority of the population are aged
between20-45. Painting, home improvement and cleaning services are in high
demand because most residents are preoccupied with office work, thus the need
to hire experts to accomplish home tasks.
Technology
It is hard for a business firm to launch a fierce
competition without investing in technology. MGC management is aware of the
importance of technological upgrade for efficiency in service and product
delivery. That is why research and development activities have been adequately
funded to improve on innovation. Garage cleaning, for instance, is conducted
using high powered and sophisticated machinery to save on time and labor costs.
In the end, the firm meets customer needs. Use of automated machinery in home
and garage cleaning is on an upward trend not only in Oklahoma but also countrywide. International
Federal Robotic (IFR) statistics show that use of automated cleaners rose by
11.5% between 2013 and 2014. The rise is a clear sign that business entities specializing
in home and garage cleaning are quickly adopting robotic technology to tap into
the growing local market. In fact, embracing technology cuts on labor costs by
more than a half (Davenport et al., 2013).
Environment
Business’ concern for environment is surfacing as
one of the major factors considered by government authorities, customers and
business regulators. Rising levels of environmental pollution calls for
immediate action to reverse the trend. In Oklahoma , most firms see the need of adopting
environmental care policy for the betterment of business environment.
Changes in environmental conditions may trigger
natural disasters such as hurricanes, earthquakes, mega storms, and tornadoes.
Such disasters results in losses to the firm and the targeted market. By
minimizing environmental pollutants, global warming can be limited to an annual
rate of less than 2 degrees. If the goal is achieved, the future is bright for
MGC and other firms in Oklahoma
State .
Legal Factors
References
Bowman, S. (2010). Modern Corporation and American
Political Thought: Law, Power, and Ideology. Pennsylvania :
Penn State Press. Print.
Goble, D. (2015). Progressive
Oklahoma : The
Making of a New Kind of State. Oklahoma : University of Oklahoma Press. Print.
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